IBM India has signed a 10-year lease for 283,000 sq ft of office space at Bagmane Solarium City – Radon in Bengaluru, with the total rental outlay estimated at Rs. 3.43 bn, according to documents accessed by Propstack. The lease covers the ground floor and first to third floors of the development.

The lease commenced on February 5, 2026, while the deed was executed on May 29 and registered on October 1, the documents showed. Akruthi Infra-Build Developers owns the property. IBM will pay monthly rent of Rs. 24.9 mn at a rate of Rs. 88 per sq ft, with a 15 per cent escalation every three years.

The company has paid a security deposit of Rs. 149.6 mn. In addition to the base rent, it will pay fit-out rent of Rs. 29.8 mn a month for five years until March 2031. The fit-out payments over that period are estimated at Rs. 1.79 bn.

The transaction indicates continued demand from large technology companies for institutional office space in Bengaluru, according to Raja Seetharaman, co-founder of Propstack. He said the long-term commitment and developer-backed fitted infrastructure reflected occupiers’ preference for Grade-A assets and Bengaluru’s importance as a centre for global technology research and development and core operations.

A Colliers India report said office leasing increased 7 per cent quarter-on-quarter from 17.4 mn sq ft in the previous quarter. Bengaluru led Indian office demand, with leasing in the city reaching 5.2 mn sq ft in Q3, an 11 per cent year-on-year increase.

Earlier this year, IBM India leased 230,000 sq ft in Gurugram for Rs. 1.8 bn over 10 years. In 2024, it leased 830,000 sq ft in Bengaluru at a starting monthly rent of Rs. 140 per sq ft and entered into another transaction for 106,000 sq ft at Divyasree Orion in Hyderabad.